Five EV/Hybrid Product Marketing Strategies

Demand for Hybrid and Electric Vehicles (EVs) is growing at an ever increasing rate. A Mintel study indicated that sales of hybrids and EVs were up 73 percent in 2012. They forecasted that the number of hybrid and Evs will reach 535,000 units by the end of 2013, which represents a 14 percent increase in sales over 2012. By 2017, Mintel predicts that sales of hybrid and EVs will reach 850,000 units, representing five percent of the total US car market.

Automotive companies are now vying for attention in an increasingly competitive space. Here are five EV product offerings and the associated marketing strategies of the five different automakers.


Subaru XV Crosstrek Hybrid: Does it All

Even companies that have no history of producing electric vehicles are getting in on the action. Subaru is offering a car that tries to do it all. At the New York International Auto Show Japanese car maker Subaru unveiled its first-ever production hybrid vehicle. The Subaru XV Crosstrek Hybrid is meant to be at home in both the city and the country. As crossover, this is an SUV that is also ideal for urban transport. The vehicle will arrive in Subaru dealerships in the fourth quarter of 2013. This hybrid combines a 2.0-liter Subaru engine boxer with a 13.4-hp electric motor that’s integrated into the transmission.

Scion iQ-EV: Tease

Scion is a brand of vehicles produced by Toyota for the North American youth market. Its product strategy can best be described as a tease. The 2013 Scion iQ-EV is ranked number one according to the EPA’s annual list of fuel efficient vehicles. With a rating of 121 MPGe combined (138 city and 105 highway), the iQ-EV is most fuel efficient production vehicle in the world. However it is only a showpiece as a mere 100 units are scheduled to be build, and none of these will be publicly available.

Fiat 500e: Efficiency Cost and Sexy

Fiat is an Italian company with a long history. The 2013 Fiat 500e electric car has been met with great enthusiasm, selling out very quickly. The electric 500 can be leased for $199 a month. The EPA rated the Fiat 500e at 108 MPGe highway. The car boasts low tailpipe emissions and it will reportedly go 87 miles on a full battery charge. It also has a reputation of being fun to drive. Fiat 500e's unique Italian style and fuel efficiency prompted Tim Kuniskis, Head of FIAT Brand North America to call the car “environmentally sexy."

Mitsubishi i-MiEV: Mileage and Price

Mitsubishi is another Japanese company that has opted for a strategy based on radical efficiency and ultra low cost. The very affordable and highly efficient Mitsubishi i-MiEV has a 64-mile range, and it can be plugged-in almost anywhere. What is most astounding about the tiny i-MiEV is not the fact that it offers 112 MPGe, but the fact that it can cost as little as $69 per month. The vehicle is anything but overpowered with an electric motor rated at 47 kilowatts, or 63 horsepower. Nonetheless, the i-MiEV five-door hatchback is an excellent, efficient, inexpensive vehicle for an urban environment.

VIA Motors: Capitalizing on Demand and Technological Novelty

Automotive upstart, US based VIA motors may have the best business strategy. They are using a relatively unique technological configuration to build a popular vehicle with pent up demand demand. VIA Motors unveiled the first ever " extended-range" pickup with batteries, electric motors and a backup gas engine. The pickup sports a 4.3-liter V-6 gas engine, which is used only when the batteries need charging. It is coupled with a 150-kilowatt electric generator. The most distinctive feature of this pickup, is its ultra lightweight engine which weighs only 108-pounds. In addition to the pickup, VIA Motors also makes extended-range SUVs and vans.

The future of vehicles is clear to Bob Lutz, a member of VIA Motors' board and the former General Motors vice chair often referred to as the father of the Chevy Volt. He said, "Once you electrify, you will never go back."

© 2013, Richard Matthews. All rights reserved.

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US Fuel Efficiency Standards Surpass Europe

President Obama's new US fuel efficiency standards may catapult America ahead of Europe by lowering vehicular emissions. The burgeoning US electric and hybrid car market will most certainly benefit from Obama's actions. The President first introduced a fuel standard of 35 miles per gallon (mpg) for 2016 and starting in 2025, American cars and light trucks will have to achieve a standard of at least 54.5 mpg.

The International Council on Clean Transportation (ICCT) suggest that the US target surpasses the EU equivalent. A comparison of Europe and the US reveals that the American standard will result in less CO2 than its European counterpart. A 54.5mpg standard would be roughly equal to a 70 grams of CO2 per km (g/km) measurement, the ICCT believes, with air conditioning credits exemptions potentially taking the figure up to a maximum of 83 g/km. The EU has only set a fuel savings target of 95 g/km for 2020, with the promise of a communication about consultations on a future 2025 targets later this year.

For so many decades the US lagged behind Europe in auto emissions, now the President's bold new standard may very well put them on top of the heap of a very competitive marketplace.

However if Republican nominee Mitt Romney wins this year’s presidential election he will likely scrap Obama's fuel standard and replace it with an anemic 5 percent year-on-year fuel savings.

© 2012, Richard Matthews. All rights reserved.

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President Obama's 2013 Budget Seeks to Increase EV Tax Credits

President Obama's proposed budget seeks to increase tax credits for electric vehicles (EVs). According to the President's proposed budget, EV incentives would increase from $7,500 to $10,000 beginning in fiscal 2013.

The idea behind the tax credit program is to increase sales of EVs which are not selling as well as many had hoped. To attain the President's goal of a half million EVs on the road by 2015, the Verge reports that sales of plug-in vehicles will need to grow by 143 percent each year in order for the President to reach his goal of a million EVs on the road by 2015.

Americans are still not habituated to the idea of EVs. One factor inhibiting the growth of EV sales in the US is the relatively high sticker price. The Tesla Model S sells for $57,400 and the Fisker Karma sells for a whopping $102,000. Even the more affordable Nissan Leaf sells for $35,000.

Governments have an important role to play fostering the adoption of electric vehicles. Even though ten thousand dollars is a sizable tax credit, EV prices may have to be lower still to make these vehicles affordable for the average American.

It may be hard to gain desirable penetration rates for EVs until they have a lower price point and that can only be achieved through mass production. To help the sector to grow and achieve economies of scale, governments may have to fill the void until market demand can drive mass manufacturing.

For a summary of the enviromentally oriented elements within President Obama's 2013 Budget click here.

© 2012, Richard Matthews. All rights reserved.

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Greener Vehicles Growing Cleantech and Providing Green Jobs

In 2011 greener vehicles were one of the driving forces behind the growth of US cleantech. We expect to see the habitual greentech drivers like solar and wind, but in 2011 we also saw tremendous growth in EVs and hybrid cars in the US.

Green vehicles are one of the more popular green technologies. In 2011 Chevrolet released the Volt and this was one of the vehicles that helped General Motors (GM) regain its position as the world's largest automaker. The renewed success of GM is providing jobs for Americans.

These greener vehicles are having significant impacts outside of the automaking industry. New partnerships and collaborations are being formed to do things like provide refueling services for this new generation of vehicles.

In 2011 cleantech companies opened new facilities and provided hundreds and thousands of new green jobs. This is particularly important given the fact that the effects of the recession are still being felt in the US.

As these new jobs came online they helped to contribute to declining unemployment numbers. The unemployment rate remained around 9 percent in the US throughout much of 2011, it has now fallen to just over 8 percent and greener vehicles are an important part of that improving employment picture.

© 2012, Richard Matthews. All rights reserved.

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Quebec's Electric Vehicle Incentive Program

Quebec has launched a new program that is designed to increase the use of its renewable energy resources to power ground transportation. Quebec gets almost all of its electricity from hydro power which is a renewable resource. Quebec is the fourth largest hydroelectric producer in the world making electric vehicles a natural fit. Quebec already has the electricity to power at least one million elelctric cars. The province's Electric Vehicles Action Plan will make transportation electrification a centerpiece of Quebec's efforts to develop a new sustainable mobility system.

Quebec has one of the most ambitious GHG reduction targets in North America and the provinces electric vehicle strategy is the cornerstone of that effort. The province wants to encourage a thriving green economy and the province's plan will see an investment of 165 million between 2011 and 2020. Quebec's program is titled Running on Green Power. It is scheduled to launch on January 1, 2012.

With its abundant hydroelectric power, Quebec is a world leader in the fight against climate change. According to Environment Canada, Quebec's electrical grid is the cleanest in the country with an electricity intensity of only 2 grams of CO2 (2g CO2e/kWh) equivalent emitted for every kilowatt-hour (kWh). Quebec also has the lowest per-capita greenhouse gas emissions in Canada.

The 4.5 million vehicles in Quebec consume 35 percent of the province's oil consumption. The goal is to make 25 percent of all of Quebec's light passenger vehicle sales electric (plug-in hybrid or fully electric) by 2020.

The province's Deputy Premiere Nathalie Normandeau said the goal of the program is to reduce oil consumption, make electricity the fuel of choice for cars, buses, and trains.

According to Clement Gignac, the Minister of Economic Develolopment, Innovation and Esort Trade, one of the goals of the Electric Vehicles Action Plan is to spur the development of innoavtvative market-driving products and thus the creation of a world-class industrty.

Pierre Arcan, the Minister of Sustainable Development Environment and Parks indicates that the transportation sector accounts for 43 percent of Quebec's GHGs. That is up 28 percent since 1990.

Sam Harnad, the Minister of Transport indicates that the province has succeeded in increasing public transit use by nearly 8 percent. According to the Minister, 50 percent of all trips on public transit already involves electrically powered equipment.

According to government figures, Quebecers could save $37 per week with plug-in hybrids and $39 per week with fully electric vehicles.

For individuals who purchased a vehicle in 2011 were offered a refundable tax credit for the purchase or lease of a new fuel efficient vehicle. As of January 1, 2012, the refundable tax credit for the purchase or lease of fuel efficient vehicles will be replaced with rebates for the first purchasers of hybrid or electric vehicles. The rebate will be deducted from the after-tax purchase or lease price.

In the case of electric vehicles the amount of the rebate will depend on the battery s elelctgrical storage capacity.

To help Quebecers charge their vehicle, those who purchase or lease eligible vehicles will also be able eligible for grants to purchase home charging stations. Quebec is the first province in Canada to provide financial assistance for these home charging stations.

A total of $50 million will be set aside for purchase or lease rebates for hybrids, electrics and charging stations.

All electric and plug-in hybrids with a minimum 4 KWH battery will be eligible for a rebate of between 5
$5000 and $8000 in 2012. Low speed electric vehicles (LSVS) and hybrids will be eligible for a rebate of $1000.

Eligible hybrids must not exceed 5.27 liters/100km for gas-powered vehicles and 4.54 liters/100km for diesel-powered low speed electric vehicles.

For more information see Quebec EV action plan.

© 2011, Richard Matthews. All rights reserved.

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Ontario Electric Vehicles Incentive Program

As of July 1, 2010, Ontario consumers were eligible for an incentive ranging from $5,000 to $8,500 towards the purchase or lease of a new plug-in hybrid electric or battery electric vehicle. The Ontario EV program also offers non-monetary incentives. These include access to high-occupancy vehicle (HOV) lanes – even if only one person is in the car – and access to public recharging infrastructure at Ontario government parking lots (such as GO bus and train stations around the Greater Toronto Area).

The EV incentive program applies to new, highway capable, plug-in hybrid eligible electric vehicles (PHEVs) or battery electric vehicles (BEVs) purchased on or after July 1, 2010. The value of the incentive is based on the vehicle’s battery capacity and ranges from $5,000 for a 4 kWh battery to $8,500 for a 17kWh battery. The value of the incentive for leased vehicles is scaled to the term of the lease.

Consult the official list of vehicles that currently qualify for the incentive.

The EV incentive program is open to persons, businesses, municipalities, non-government organizations and non-profit groups. Applicants can receive incentives for no more than five vehicles per calendar year.

Leased vehicles are eligible for an incentive depending on the term of the lease and whether the vehicle is used for personal or fleet purposes. To qualify for the full value of the incentive, a minimum 36-month lease term is required. For vehicles leased for shorter terms, the incentive will be applied according to the following schedule:

Term of Lease (months)    Personal Vehicles       Fleet Vehicles
               12                                         33.3%                               0%
               24                                         66.7%                               0%
               36                                          100%                           100%

If vehicles do not meet the specified term requirements, the incentive payment must be repaid in full.

To qualify for the incentive, EVs for personal use must be registered and plated in Ontario for a minimum of 12 months. Fleet vehicles must be registered and plated in Ontario for a minimum of 36 months to qualify for the program.

Eligible electric vehicles purchased in another jurisdiction can qualify for the incentive only if the registration of the vehicle in Ontario is the first time the vehicle has been registered in any jurisdiction. Vehicles that have been registered in other jurisdictions prior to Ontario do not qualify for the incentive.

If vehicles do not meet the residency requirements for the specified term, the incentive payment must be repaid in full.

There are two ways to receive the incentive. The automobile dealer can apply the incentive at the point-of-sale and then submit the incentive application on your behalf. Alternatively, you can purchase the vehicle at full price and apply directly for the incentive by completing the application form and submitting it to the Ontario Ministry of Revenue.

The incentive is applied to the after tax value of the vehicle. In the case of a leased vehicle, the monthly principle amount will reflect the reduced cost of the vehicle.

Download the incentive application form (PDF version, Web version) and guide (PDF version, Web version).

Consult the list of eligible vehicles and incentive values
Download the incentive application form (PDF version, Web version) and guide (PDF version, Web version).
If you are a vehicle manufacturer, download an application to qualify your vehicle for the Electric Vehicle Incentive Program

Contact Service Ontario at 1-866-668-8297

© 2011, Richard Matthews. All rights reserved.

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The BC Hydrogen Highway

The Canadian province of British Columbia (BC) built a hydrogen highway system for the 2010 Olympics. The BC hydrogen highway runs between the cities of Vancouver and Whistler. It was designed to showcase zero-emissions hydrogen technology.

There are hydrogen refueling stations near Victoria and on the University of British Columbia campus in Vancouver. In Surrey, hydrogen refueling station was opened in March 2002. As of late 2006, hydrogen fueling stations were built in Victoria, Vancouver and Surrey.

The province of British Columbia and BC Transit have also built hydrogen powered buses which were used as transport along the hydrogen highway during the Olympics.

Companies like Ford test drove its Focus FCV cars along the hydrogen corridor gathering information about operating hydrogen cars in cold weather conditions.

In addition to the British Columbia Hydrogen Highway Initiative, Canada also has invested in three other hydrogen initiatives as well. The Vancouver Fuel Cell Vehicle Project, Hydrogen-Powered Delivery Van Project and the Hydrogen High-Pressure Valve Development Project.

These three programs are part of the Canadian Transportation Fuel Cell Alliance's goal of moving Canada towards expanded use of hydrogen and fuel cell technologies.

© 2011, Richard Matthews. All rights reserved.

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Hydrogen Powered Vehicles and Infrastructure in the Province of BC

British Columbia (BC) has announced incentives to increase their support for hydrogen fuel cell vehicles and infrastructure. These programs will help create Canada's first publicly accessible hydrogen refueling station. The initiatives were announced by the Government of BC as a part of its clean energy strategy.

A hydrogen fuel cell does not need to be recharged as it converts the chemical energy of fuel (hydrogen, natural gas, methanol, gasoline, etc.) and an oxidant (air or oxygen) into electricity. It produces almost no emissions.

BC already has the largest number of hydrogen fueling stations in Canada. More than $6 million in provincial funding has been earmarked for new charging stations and upgrades to hydrogen fueling stations at existing facilities.

The news was welcomed by the Canadian Hydrogen and Fuel Cell Association(CHFCA). The announcements from the province led Eric Denhoff, President and CEO of the CHFCA to say:

"These two initiatives are further evidence of the strong commitment the Government of BC has made to supporting British Columbia's world-leading hydrogen infrastructure, and the organizations involved in the province's hydrogen and fuel cell sector."

British Columbia is a world leader in hydrogen fuel cell transportation solutions. An estimated 75 per cent of Canadian fuel cell and hydrogen-based research and development expenditures have been invested in British Columbia.

The government of BC's investments in hydrogen are also creating green energy jobs in the province. The province is home to 35 hydrogen and fuel cell technology companies that employ 1,200 people. These companies include Ballard Power Systems, Angstrom Power, the Automotive Fuel Cell Cooperation, Powertech Labs, HTEC and Sacre-Davey Engineering.

The Automotive Fuel Cell Cooperation in Burnaby is a company that employs more than 200 people. The province also attracted Mercedes-Benz to build a fuel cell manufacturing facility in Burnaby. In March 2011, Mercedes-Benz Canada announced plans to build the new facility.

By 2016, global sales for the hydrogen and fuel cell sector are estimated to be $8.5 billion, creating an estimated 14,000 jobs in Canada. BC Transit already has fleet of 20 hydrogen-powered fuel cell buses in Whistler which is the largest deployment of its kind in the world.

"These announcements by the Government of BC create tremendous momentum for the hydrogen and fuel cell industry," said Mr. Denhoff. "We have world-class research and development at the NRC Institute for Fuel Cell Innovation and UBC's Clean Energy centre; world-leading manufacturing at Ballard and the Automotive Fuel Cell Cooperation; and a host of innovative small and medium enterprises supporting the research and development efforts in the province."

For more information about BC's hydrogen initiatives including which vehicles qualify under the new program click here.

© 2011, Richard Matthews. All rights reserved.

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The B.C. Government's Greener Transportation Incentives

The Canadian province of British Columbia's SCRAP-IT® program provides financial remuneration for vehicles with poor fuel efficiency and incentives for greener forms of transportation. Reducing (inefficient) vehicular traffic improves air quality and reduces emissions.

The BC SCRAP-IT Society fund is already in operation and with new funding it will expand the program and remove even more high-polluting vehicles from B.C. roads. The SCRAP-IT Society has already removed over 30,000 vehicles from B.C. roads, resulting in a reduction of over 200,000 tonnes of GHGs. The program has a $2.5-million budget.

The success of the program has prompted Dennis Rogoza, CEO of the BC Scrap-It Society to say:

"We're excited about moving more power polluters off of B.C. roads. It's clear with programs like these, British Columbia is committed to providing greener options for a cleaner future. These older vehicles scrapped by our program represent emissions that are up to 60 times greater than that of newer vehicles"

The government of B.C. offers a total of seven programs that provide incentives to encourage greener transportation.

HERE ARE SEVEN INCENTIVE PROGRAMS:

Option #1
Replacement Vehicle - $300, $600 or $1,000*
(*based on CO2 emission reduction), PLUS a $250 discount at the point of sale

$300 for a reduction of up to 5 tonnes.

$600 for a reduction of 5.1 to 10 tonnes.

$1,000 for a reduction of 10.1 tonnes, or more.

Plus a $250 discount, before taxes, at the point of sale. Note: You must purchase or lease a 2004* or newer vehicle from a Participating Dealership in order to receive the discount.

Option #2
TransLink 3 Zone MultiPass - Lower Mainland
A 9 month 3 zone MultiPass

BC Transit ECOPASS - Victoria
A 1 year ECOPASS valid on the Victoria Regional Transit System.

Option #3
New Bike
Up to $500 off the purchase of a new bike. A 10% discount, up to $100 at the point of sale and the remainder, 40%, up to $400 directly from SCRAP-IT when you purchase your new bike from a Participating Bicycle Retailer.

Option #4
West Coast Express Passes
One of the following West Coast Express options:

MISSION AREA (Three 28 day passes)
MAPLE RIDGE AREA (Four 28 day passes)
TRI-CITIES AREA (Five 28 day passes)
INTER-SUBURBAN AREA (Seven 28 day passes)
or, if you are not a regular rider, a GO2 Card

Option #5
Car Sharing Credit
A $750 credit with one of the 3 following organizations:

• Modo The Car Co-op
• Zipcar
• The Victoria Car Share Co-Op

Option #6
Ride Sharing Credit
A $750 credit with RideShare, The Jack Bell Foundation

Option #7
$200 "Cash"

Approved applicants will receive an email approval letter with more details about each incentive offered.

© 2011, Richard Matthews. All rights reserved.

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BC's Electric Vehicle Incentive Program

British Columbia’s provincial incentives for electric vehicles and home charging systems begin to take effect On December 1, 2011. B.C.'s new clean vehicle incentive program hopes to grow the sales of clean tech vehicles in the province with point of purchase incentives and supplementary incentive offerings to help build the required charging infrastructure for electric vehicles (EVs).

Environment Minister Terry Lake and Energy and Energy and Mines Minister Rich Coleman announced the 'Canada Starts Here: The BC Jobs Plan.' The government is supporting EVs and the green-tech sector with a fund valued at $17 million for that province.

Purchases of EVs can get rebates up to $5000 depending on battery size. Compressed natural gas vehicles will also qualify for a rebate. These financial incentives will help with early adopter uptake in the short-term and ensure a quicker payback period on the price premium for plug-in electric vehicles. These incentives are designed to help build the critical mass and production capacity required by OEMs to bring the costs of these vehicles down in the longer-term.

In other provinces full-functioning electrics qualify for slightly higher rebates than the hybrid options but in B.C. purchasing the fully electric Nissan LEAF qualifies for the same rebate as the Chevrolet Volt.

These investments have prompted Blair Qualey, CEO, New Car Dealers Association of B.C. to say:

"The point-of-sale rebate program is key to attracting new clean energy vehicles to the B.C. market. Manufacturers are eager to launch their new electric, plug-in hybrid electric and fuel cell cars in markets that demonstrate both high demand and with infrastructure in place - B.C. is now one of those markets."

According to Environment Canada, the British Columbia electrical grid is the third cleanest in the country with an electricity intensity of only 20 grams of CO2 equivalent emitted for every kilowatt-hour (kWh) produced.

Homeowners in B.C. that install a dedicated EV charging station in their homes will also qualify for an additional $500 rebate. Battery-powered electric vehicles should cost as little as $300 per year in electricity bills compared to upwards of $1,500 per year to fuel a gas-powered car.

For more information on B.C.'s cleaner vehicle programs click here.

© 2011, Richard Matthews. All rights reserved.

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Canadian Electric Vehicle Incentive Programs

Three Canadian provinces offer incentives for the purchase of an electric vehicle (EV). Ontario was the first province to offer EV incentives followed by British Columbia and Quebec.

A battery electric vehicle (EV) is a vehicle that is powered by electricity and contains a battery to store energy. There are two main types of EVs: conventional hybrid electric vehicles (HEVs) and grid-connected vehicles that include plug-in hybrid battery electric vehicles (PHEVs) and battery electric vehicles (BEVs)Unlike HEVs, PHEVs and BEVs have larger capacity batteries that can be recharged by plugging in to the electricity grid. Only new PHEVs and BEVs are eligible for the incentive program.

Although the incentives for EVs differ from province to province, the maximum goes as high as $8,500.

Ontario's program commenced in July 2010, B.C.'s program went into effect in December 2011 and Quebec's program will start offering rebates in January 2012.

Canada is a large country with vast expanses of uninhabited land. For EVs to make significant inroads they will have to be more practical (ie: get better mileage on a single charge).

It is no coincidence that the three provinces offering EV incentives are also the wealthiest non-oil producing provinces with the greatest population densities.

© 2011, Richard Matthews. All rights reserved.

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PepsiCo's Sustainability Efforts

PepsiCo is committed to protecting the Earth's natural resources through innovation and more efficient use of land, energy, water and packaging. The company's Sustainability Reports detail PepsiCo's governance and economic impacts, as well as achievements in human sustainability, environmental sustainability, and talent sustainability.

Earlier this year, PepsiCo UK produced its second environmental sustainability report. As reported in a MarketingWeek article, the report looked at climate change, agriculture, water use, its products and how the company works with others to drive change within the business.

Since 2005, PepsiCo has also been committed to greening its vehcle fleet. As of 2009, the company had 1,250 hybrid vehicles, which amounted to the second largest non-governmental fleet of hybrid vehicles in the US.

“Our commitment to hybrid company cars is part of our overall commitment to corporate sustainability and reducing our fuel consumption and greenhouse gas emissions,” said Pete Silva, director fleet procurement, PepsiCo.

The company’s sustainability policy includes steadily improving environmental, social, and economic aspects of the world in which it operates. Topping three EPA lists (The Top 25; Fortune 500 Challenge; and “100 Percent Green Power Purchaser”), PepsiCo will continue to add hybrids to its fleet.

Hybrid fleet models include Toyota Prius and Ford Escape and delivery trucks. Pepsi Co. owned, Frito Lay has electric delivery vans and they use hybrid refrigerated delivery trucks in select divisions.

PepsiCo has also worked with GreenDriver to train sales and delivery drivers on fuel-efficient driving techniques.

In addition to sustainable initiatives in its manufacturing of food and drink the company plans to introduce FSC paper-based packaging to its Quaker and Walkers brands within three years as part of its plan to make all packaging renewable, recyclable or bio-degradable by 2018.

For more information on PepsiCo's sustainability efforts click here.

© 2011, Richard Matthews. All rights reserved.

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Survey Shows China More Receptive to EVs than America

Electric Vehicles (EVs) may be taking the world by storm but public acceptance is better in China than it is in America. These are some of the conclusions of a 2011 Accenture survey tiled "Plug-in Electric Vehicles: Changing Perceptions, Hedging Bets".

Globally 58 percent of respondents said they favor plug-in electric vehicles as a long-term substitute for internal-combustion vehicles. In the US only 46 percent of respondents said that they favor plug-in electric vehicles replacing conventional vehicles over time.

Germany is a green energy leader and they are vying for leadership in the electric vehicle market, but only 53 percent of the population see electric vehicles as a viable, long-term replacement for conventional cars.

In Italy, 76 percent of the population surveyed favored electric vehicles as an eventual substitute for conventional vehicles. In China, the number was a staggering 86 percent in favor of plug-in electrics.

Traditional consumption patterns may help explain the difference. In China people appear to be more comfortable with charging their cars at electric fueling stations, while Americans and respondents from the rest of the world prefer charging their cars at home. Some 65% of global respondents stated that they would prefer to charge their vehicles at home as did 77 percent of respondents in the US. In China only 35% of respondents would prefer charging at home.

The Chinese are also more interested than the rest of the world in knowing where the EV power source is coming from. Accenture’s study indicated that globally 45 percent of respondents expressed a desire to know where the electricity to charge their electric car comes from. In the US, only 43 percent were concerned about the origin of their electric power, while in China 62 percent wanted to know where their power came from. This is a critical issue in the sustainability profile of an EV as a car powered by electricity from renewable energy is much better for the environment than EVs powered by the burning of coal

As revealed by the Accenture study, the Chinese are also more forward looking in terms of emerging technology. Although battery exchange may win out over home charging, 62 percent of Americans surveyed would prefer to charge a battery over exchanging it, while 35 percent of the Chinese respondents favored charging over an exchange.

A J.D. Power and Associates Report predicts that China is expected to reach sales of 35 million light-vehicles in 2020 while the US can expect sales of 17 million light-vehicles.

The US may be well positioned to lead the EV revolution, but with its massive domestic market and receptive population, China will give America a run for its money.

© 2011, Richard Matthews. All rights reserved.

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The US is Positioned to Lead the Global Competition for EV Supremacy

The US is well positioned to lead the global competition for EV supremacy. A 2010 McKinsey research firm study suggests that the US is the nation most likely to lead the world in electric car ownership in the coming years.

America is the home of car culture and the nation has a strong domestic auto market. The US has one of the largest vehicle markets in the world and this trend is expected to continue well into the future. According to a J.D. Power and Associates Report, the US is expected to reach 17.4 million auto sales in 2020. Market analyses by energy research firm SBI Energy show that of the 204 million personal vehicles in the US, the average household owns 1.9 vehicles. The viability of the US bid for EV supremacy also derives from the fact the America is the world's wealthiest nation.

According to an SBI Energy report, Electric Vehicle (EV) and Plug-In Hybrid Electric Vehicle (PHEV) Markets Worldwide, in the six years between 2004 and 2009, the number of HEV available models around the world has tripled to 29 and the number of brands producing hybrids has jumped from six to fourteen. In fact, almost a third of the hybrids being offered in the US have 2010 as their first model year.

Global sales of hybrid electric vehicles rose 33% in 2009 with 700,000 vehicles sold in an unfavorable climate that saw the overall auto market plunge worldwide. "SBI Energy's first EV market study entitled, Electric Vehicle (EV) Infrastructure Manufacturing projects North America will hold 20% of the electric vehicle infrastructure manufacturing market by 2014, driven by government incentive programs and the movement toward eco-friendly consumer lifestyles," says Shelley Carr, publisher for SBI Energy. "While government capital is vital, growth also depends heavily on the investment interests of the private sector and the adoption of electric vehicles and plug-in hybrid electric vehicles by consumers."

China is already a leader in the transition from fossil fuel powered cars to electric vehicles. China has a proven capacity for mass producing things inexpensively. Chinese auto manufacturers also have a huge domestic market. A J.D. Power and Associates Report predicts that China is expected to reach 35 million light-vehicle sales in 2020.

China is not alone in its pursuit of global supremacy, Germany and France are also vying for leadership in the EV sector.

Despite serious challenges, America's viability as a global EV leader was corroborated in a study that says the US is the most likely to spearhead a movement toward electric cars from gasoline-driven cars as a means of mass transportation. This is the finding of a research index from McKinsey & Company, a global consultancy firm.

McKinsey’s electric-vehicle index gauges nine variables including consumers’ favorability toward electric cars, a segment where America ranks highly. The US ranked first in the electric-vehicle index ahead of France, Germany, China and other Western European countries.

America is in a competitive position due largely to government support of EVs. In 2007, Congress set aside $25 billion in Department of Energy low-interest loans to encourage the advancement of alternative-fuel vehicles, including EVs. The DOE has made $8.5 billion in loans to Nissan, Ford, Tesla Motors, Tenneco and Fisker Automotive. President Barack Obama also earmarked another $2.4 billion in grants for battery-makers and other electric-vehicle component-makers in 2009. The stimulus package also included a $2,500 to $7,500 tax credit to consumers who purchase EVs.

These investments have put America in the position to lead the race to be the leader in one of the most expansive economic and technological opportunities of our times. The demand for EVs is sure to keep growing. As this demand grows so will the response from automakers. Nissan and General Motors already plan to have a combined capacity to build hundreds of thousands of EVs in the US by next year (2012).

The growth of EV sales will also positively impact associated industries. Pike Research projects that $61 million will be spent across the US on EV charging equipment during 2011.

This is a boon for American business, not only in terms of the vehicles themselves but in terms of the infrastructure needed to support EVs.

© 2011, Richard Matthews. All rights reserved.

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DOE's EV Oriented Transportation Budget

The 2012 Department of Energy (DOE) budget submitted to Congress includes a 20 page section on Vehicle Technologies (VT), much of which is focused on vehicle electrification. In the 2012 DOE budget, VT finance increases 80 percent from $325 million to $588 million. Charging equipment and energy storage technology are getting the bulk of the financing assistance.

The majority, ($229 million) of the VT budget increase goes towards EV deployment and infrastructure. It will benefit programs like Clean Cities which provides grants for purchasing of EVs and charging equipment. It will also benefit EV charging equipment companies.

Funding increases also include energy storage technology which increased from 94 million in 2010 spending to $188 million in the proposed budget. The VT budget also invests in accelerating cost reduction through more research and manufacturing funding.

© 2011, Richard Matthews. All rights reserved.

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US DOE Supports Electric Vehicles with $184 Million in Grants

Late in 2010 US Secretary of Energy Steven Chu announced that the U.S. Department of Energy will start accepting applications for grants to accelerate the development and deployment of new efficient vehicle technologies. Up to $184 million in grants is available for a wide variety of EV technologies including advanced materials, combustion research, hybrid electric systems, fleet efficiency, and fuels technology.

"[The DOE] awards will help ensure America leads the world in the development of advanced vehicle technologies that support cost-competitive, convenient, and comfortable fuel-efficient vehicles," said Secretary Chu in the DOE press release. "Investments in the next generation of vehicle technologies are laying the groundwork for a sustainable transportation sector in America that strengthens our economy and improves our economic competitiveness."

© 2011, Richard Matthews. All rights reserved.

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Study Finds EVs Better than a Renewable Energy Standard

According to research conducted by Rice University’s Baker Institute for Public Policy, EVs are better than a national renewable energy standard at reducing emissions and cutting oil imports. The study shows that replacing fossil fuel powered cars with EVs in the US would have a better result than imposing renewable energy quotas.

The study says: “The single most effective way to reduce US oil demand and foreign imports would be an aggressive campaign to launch electric vehicles into the automotive fleet.”

The US Carbon Management Policy study concludes that if 30 percent of all vehicles were electric by 2050, that would cut US oil use by 2.5 million barrels a day and cut emissions by 7 percent. A national mandate for renewable energy would cut emissions by only half that amount (4%) over the same period.

This Research also found that a carbon tax would actually end up being more costly in the long run and would not impact oil imports in any significant way.

Government support for EVs is important and so is renewable energy to power those cars. However, renewable energy is not a panacea in the short term. As we transition to green energy, renewables can operate alongside cleaner fossil fuels like natural gas. We can also achieve reduced energy demand through greater reliance on public transportation and more efficient building practices including retrofits.

© 2011, Richard Matthews. All rights reserved.

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GM CEO Calls for Gas Tax Rather than a Fuel Efficiency Mandate

In a June 2011 interview in Detroit News, General Motors CEO Dan Akerson said his company and his industry would be helped, not hurt, if consumers paid higher gas taxes. He suggested that a $1 a gallon increase in the gas tax is a way to encourage buyers to purchase more fuel efficient cars.

The current federal gas tax is only 18.4 cents a gallon, but Akerson said that he would not be opposed to an immediate 50-cent-a-gallon increase to take advantage of recent declines in gas prices. Although he concedes that this would probably make some of his Republican friends "puke," it would do more to help the environment than a federal government mandate of of 60 MPG.

Paul Ballew, chief economist at insurer Nationwide who was formerly a director of sales analysis at GM, said it's always been clear within the auto industry that given the choice between tougher fuel economy standards and higher gas prices, the latter is a better deal for the automakers.

However, it is very unlikely that Republican lawmakers would support such a move. "They're not going to get it though, because that would take a lot of sanity in Washington and we're not going to see that," Ballew said.

© 2011, Richard Matthews. All rights reserved.

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Americans Want Cars to get 60 MPG

According to a survey released on May 16, 2011, a solid majority of Americans want vehicles that are much more fuel efficient. The Consumer Federation of America (CFA) said its survey of 2,000 Americans found strong support for a government mandate of 60 miles a gallon by 2025. As reported in USA Today, “Cars would cost more, but respondents said they'd be willing to pay more as long as the higher purchase costs could be recouped in gas savings in 5 years.”

“Concern about volatile gasoline prices and support for higher standards is driven by the huge and rising bite gas expenditures are taking from household budgets—from less than $2000 in 2009 to more than $3000 this year,” said Mark Cooper, CFA’s research director and energy expert in a press release. “Pain at the pump, along with the country’s oil import dependence, has produced a growing consensus that the federal government should substantially increase fuel economy standards.”

CFA received the data from a poll by Opinion Research Corp, which shows that “62 percent of Americans support a federal mandate requiring automakers to meet a 60 mpg standard by 2025, a proposal the Obama administration is considering,” reports the Detroit News. “The fuel efficiency mandate already is scheduled to rise to 35 mpg by 2016 from 27.5 mpg for cars today.”

Government mandates will push automakers towards greener more fuel efficient vehicles like hybrids and fully electric cars. All the major automakers are already launching hybrid vehicles and fully electric cars are sure to follow. According to the CFA study, the general public appears to welcome the move. "We're talking about changing the trajectory of consumption," Cooper said. "The consumer is ready."

© 2011, Richard Matthews. All rights reserved.

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Find EV Charging Stations with Google Maps

To help make it easier for electric vehicle owners to recharge, Google will display the locations of EV charging stations on its web and mobile applications. Charging stations are nowhere near as ubiquitous as gas stations and this is a barrier to the widespread proliferation of electric cars. Thanks to Google Maps, owners of plug-in hybrids and fully electric vehicles will have an easier time finding charging stations.

Google has been a powerful supporter of greener cars. The search leader is also behind an initiative called RechargeIT, which hosts data about plug-in electric vehicles.

Google is working with the US Department of Energy’s National Renewable Energy Laboratory to add the data to its search engines. The Department of Energy indexes the location of all new electric vehicle charging stations as part of its GeoEVSE Forum.

© 2011, Richard Matthews. All rights reserved.

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